Investment Strategy

Italy provides the largest European market for relative value opportunities. It’s home to a sizeable pool of borrowers who have sound underlying assets or businesses, but are liquidity or capital constrained. Accessing these opportunities requires significant expertise, connections and a deep understanding of the Italian legal and financial framework to originate investments and monetise their value.

Negentropy’s reputation for technical expertise, local knowledge and extensive understanding of the Italian market – coupled with our long history of structuring transactions – makes us uniquely positioned to take advantage of these opportunities.

Sourcing Opportunity

With over 80 years of combined experience in Italian markets, the management team has an extensive network of contacts across the banking, corporate and real estate sectors. More often than not, the source of our investment is an asset owner who approaches us to structure a solution.

Underlying Asset Value

Italy is home to a sizeable pool of borrowers who have sound underlying assets or businesses but are liquidity or capital constrained. Accessing these opportunities requires connections and a deep understanding of the Italian ecosystem. Our local footprint gives us the edge in assessing the value of the underlying assets.

Distribution of Value Across the Capital Structure

Decades of experience in deal creation and structuring of debt investments gives us the technical expertise to choose the best point in the capital structure and the right investment structure to protect the downside and keep upside potential.

Relative Value

Monetising relative value and generating exceptional returns for our investors takes solid fundamental analysis and technical expertise. At Negentropy Capital, we pride ourselves on a commitment to technical excellence across the investment process.

Fixed Income Senior Fund

Senior financing of portfolios to monetise banks’ need to dispose of assets to manage their capital or liquidity profile. The seniority in the capital structure affords substantial downside protection, while capturing attractive returns for the risk taken.

Diversification is afforded by the granularity of the portfolios and the senior debt is secured by collateral and interest paid on the underlying loans.

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Strategic Credit Opportunities Fund

Shaping the financing format with the seller to extract optimal risk/return.

Capturing upside potential and minimising downside risk in complex borrower situations by simplifying the investment into a stream of predictable cash flows and choosing the appropriate seniority and structure.

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